Democrats oppose the Department of Labor allowing 401k to invest in high-risk assets such as cryptocurrencies

Democrats in the US Congress oppose the Department of Labor's proposal to allow 401k retirement plans to invest in cryptocurrency, private credit, and private equity, stating that this would expose approximately $14.2 trillion in 401k savings to high-risk assets. Senators Bernie Sanders, Elizabeth Warren, and Congressman Bobby Scott pointed out in a joint letter that high-risk assets are volatile, such as Trump's MEME token, which fell from over $75 per token in January 2025 to $2 per token, and may increase fees and weaken returns. The Trump administration stated that the new rules will provide more investment options. (The Guardian)